South African consumers may be finding it increasingly difficult to pay for vehicle insurance premiums, while also dealing with stretched budgets.
Recent statistics from the South African Insurance Association (SAIA) indicate that approximately 65% of vehicles on local roads are uninsured. This is an alarmingly high percentage, says Old Mutual iWYZE.
The insurer noted that many international markets insist on a minimum of third-party insurance, to ensure that other road users are not exposed to financial risk should an accident occur. In Norway, the UK and USA vehicles are legally required to have comprehensive insurance, it said.
Unfortunately, South African legislation does not require this, while it may seem to be a costly exercise, consumers are urged to consider the impact of not having comprehensive motor insurance in place – whether the car is financed or paid-up.
More vehicles on the road increases possibility of accidents occurring, Old Mutual iWYZE warned.
When faced with tough financial decisions cancelling insurance policies may seem the logical thing to do, however, the risks of not having comprehensive cover far outweigh the immediate saving, the financial services firm advised.
Here are 7 tips for getting the best possible value on an insurance policy for your vehicle:
- Possible saving – should a client wish to save on premiums they can choose to insure for retail or market value. In addition, although comprehensive cover is the most sought after, if you have an older car that is not financed, you can insure for Third Party, Fire and Theft or alternatively Third Party only.
- Up your security – install a tracking device in your car this helps to lower your insurance policy premiums because you have additional security for your vehicle. Keep your car in a locked garage, secure basement, or in a parking area with security. Remember to inform your insurer and request a revised quote.
- Combine insurance products – combine your car and household insurance; a combined policy covering both household goods and car can result in a more affordable monthly premium for your comprehensive insurance policy.
- Insurance history – maintain an uninterrupted insurance history, cancelling your insurance introduces gaps into your coverage history while a more complete picture of your insured history and claims can assist in qualifying for lower premiums.
- Monthly premiums – are one of the most important motoring costs for any car buyer. Any consumer who has vehicle finance has a contractual obligation to be comprehensively insured for the full duration of their finance agreement.
- Accurate information – ensure that the insurer has the correct details of the regular driver of the vehicle, as this could affect the premium.
- Relationship building – although you can shop around for premiums, it is better to build up a reputation with one insurer as the longer you stay with an insurer, the better your premiums tend to be.